Wyoming
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83-0459707
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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120 N. Washington Square, Suite 805,
Lansing, Michigan
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48933
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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o
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Accelerated filer
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o
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Non-accelerated filer
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o
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Smaller reporting company
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þ
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(Do not check if a smaller reporting company)
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●
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Medical textiles;
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●
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Geotextiles;
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●
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Textiles used in Defense and Military;
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●
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Safe and Protective Clothing;
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●
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Filtration Textiles;
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●
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Textiles used in Transportation;
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●
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Textiles used in Buildings;
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●
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Composites with Textile Structure;
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●
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Functional and Sportive Textiles.
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Material Toughness1
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Tensile Strength2
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Weight3
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||||||||||
Dragline spider silk
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120,000-160,000
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1,100-2,900
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1.18-1.36
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|||||||||
Steel
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2,000-6,000
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300-2,000
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7.84
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Low Price
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High Price
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|||||||
Fourth Quarter 2011
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$
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0.036
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$
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0.043
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||||
Third Quarter 2011
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$
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0.034
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$
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0.058
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||||
Second Quarter 2011
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$
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0.0524
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$
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0.075
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||||
First Quarter 2011
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$
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0.075
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$
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0.098
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||||
Fourth Quarter 2011
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$
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0.073
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$
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0.112
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||||
Third Quarter 2011
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$
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0.082
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$
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0.14
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||||
Second Quarter 2011
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$
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0.0651
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$
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0.208
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||||
First Quarter 2011
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$
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0.065
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$
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0.097
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»
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We expect to spend approximately $35,000 per quarter through March 2014 on collaborative research and development of high strength polymers at the University of Notre Dame. If our financing will allow, management will give strong consideration to accelerating the pace of spending on research and development within the University of Notre Dame’s laboratories.
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»
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We expect to spend approximately $13,700 on collaborative research and development of high strength polymers and spider silk protein at the University of Wyoming over the next twelve months. This level of research spending at the university is also a requirement of our licensing agreement with the university. If our financing will allow, management will give strong consideration to accelerating the pace of spending on research and development within the University of Wyoming’s laboratories.
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»
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We will actively consider pursuing collaborative research opportunities with other university laboratories in the area of high strength polymers. If our financing will allow, management will give strong consideration to increasing the depth of our research to include polymer production technologies that are closely related to our core research
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»
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We will consider buying an established revenue producing company in a compatible business, in order to broaden our financial base and facilitate the commercialization of our products. We expect to use a combination of stock and cash for any such purchase.
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»
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We will also actively consider pursuing collaborative research opportunities with both private and university laboratories in areas of research which overlap the company’s existing research and development. One such potential area for collaborative research which the company is considering is protein expression platforms. If our financing will allow, management will give strong consideration to increasing the breadth of our research to include protein expression platform technologies.
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»
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We plan to actively pursue collaborative research and product testing, opportunities with companies in the biotechnology, materials, textile and other industries.
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»
»
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We plan to actively pursue collaborative commercialization, marketing and manufacturing opportunities with companies in the textile and material sectors for the fibers we developed and for any new polymers that we create in 2013.
We plan to actively pursue the development of commercial scal production of our recombinante materials including Monster SilkTM.
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F-5
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F-6
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F-7
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(A Development Stage Company)
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|||||||
Balance Sheets
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ASSETS
|
||||||||
December 31,
2012
|
December 31,
2011
|
|||||||
Current Assets
|
||||||||
Cash
|
$ | 53,782 | $ | 195,409 | ||||
Prepaid expenses
|
2,270 | - | ||||||
Loan receivable
|
6,000 | 6,000 | ||||||
Interest receivable
|
192 | - | ||||||
Total Current Assets
|
62,244 | 201,409 | ||||||
Property and Equipment, net
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16,508 | 22,091 | ||||||
Total Assets
|
$ | 78,752 | $ | 223,500 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
||||||||
Current Liabilities
|
||||||||
Accounts payable and accrued expenses
|
$ | 329,226 | $ | 481,517 | ||||
Current portion of loan payable
|
4,377 | 3,811 | ||||||
Royalty agreement payable - related party
|
66,000 | 67,000 | ||||||
Accrued expenses - related party
|
804,187 | 564,211 | ||||||
Total Current Liabilities
|
1,203,790 | 1,116,539 | ||||||
Long Term Liabilities
|
||||||||
Convertible note payable - net of debt discount
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5,000 | 5,000 | ||||||
Loan payable, net of current portion
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4,378 | 8,456 | ||||||
Total Liabilities
|
1,213,168 | 1,129,995 | ||||||
Commitments and Contingencies
|
||||||||
Stockholders' Deficit
|
||||||||
Preferred stock, no par value; unlimited shares authorized,
|
||||||||
none issued and outstanding
|
- | - | ||||||
Common stock Class A, no par value; unlimited shares authorized,
|
||||||||
603,269,838 and 586,720,411 shares issued and outstanding, respectively
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6,360,920 | 5,385,920 | ||||||
Common stock Class B, no par value; unlimited shares authorized,
|
||||||||
no shares issued and outstanding
|
- | - | ||||||
Common Stock Issuable, 1,122,311 and 1,122,311 shares, respectively
|
22,000 | 22,000 | ||||||
Additional paid-in capital
|
920,337 | 920,337 | ||||||
Deficit accumulated during the development stage
|
(8,437,673 | ) | (7,234,752 | ) | ||||
. | ||||||||
Total Stockholders' Deficit
|
(1,134,416 | ) | (906,495 | ) | ||||
Total Liabilities and Stockholders' Deficit
|
$ | 78,752 | $ | 223,500 |
(A Development Stage Company)
|
Statements of Operations
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For the Years Ended
|
For the Period
from April 25,
2006
(Inception) to
December 31,
2012
|
|||||||||||
December 31,
2012
|
December 31,
2011
|
|||||||||||
Revenue
|
$ | - | $ | - | $ | - | ||||||
Operating Expenses
|
||||||||||||
General and Administrative
|
379,326 | 786,909 | 1,939,502 | |||||||||
Public Relations
|
- | - | 219,890 | |||||||||
Amortization of Debt Discount
|
- | - | 120,000 | |||||||||
Professional Fees
|
48,667 | 49,903 | 335,075 | |||||||||
Officer's Salary
|
267,120 | 210,000 | 1,603,514 | |||||||||
Contract Settlement
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- | - | 107,143 | |||||||||
Research and Development
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465,293 | 250,598 | 1,302,009 | |||||||||
Total Operating Expenses
|
1,160,406 | 1,297,410 | 5,627,133 | |||||||||
Loss from Operations
|
(1,160,406 | ) | (1,297,410 | ) | (5,627,133 | ) | ||||||
Other Income/(Expenses)
|
||||||||||||
Other income
|
3,000 | 2,100 | 7,881 | |||||||||
Interest income
|
192 | - | 192 | |||||||||
Change in fair value of embedded derivative liability | - | - | (2,790,185 | ) | ||||||||
Change in fair value of embedded derivative liability-related party | - | - | 119,485 | |||||||||
Interest expense
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(45,707 | ) | - | (147,913 | ) | |||||||
Total Other Income/(Expenses)
|
(42,515 | ) | 2,100 | (2,810,540 | ) | |||||||
Net (Income) Loss before Provision for Income Taxes | (1,202,921 | ) | (1,295,310 | ) | (8,437,673 | ) | ||||||
Provision for Income Taxes
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- | - | - | |||||||||
Net Income (Loss)
|
$ | (1,202,921 | ) | $ | (1,295,310 | ) | $ | (8,437,673 | ) | |||
Net Income (Loss) Per Share - Basic and Diluted
|
$ | (0.00 | ) | $ | (0.00 | ) | ||||||
Weighted average number of shares outstanding
|
||||||||||||
during the period - Basic and Diluted
|
596,143,581 | 572,708,020 |
(A Development Stage Company)
|
Statement of Changes in Stockholders Deficit
|
For the period from April 25, 2006 (inception) to December 31, 2012
|
Common Stock - |
Common Stock -
Class A Shares |
Deficit Accumulated during
|
||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock
|
Common Stock - Class A
|
Class B
|
To be issued
|
Deferred
|
Development
|
|||||||||||||||||||||||||||||||||||||||||||
Shares
|
Par
|
Shares
|
Par
|
Shares
|
Par
|
Shares
|
Par
|
APIC
|
Compensation
|
Stage
|
Total
|
|||||||||||||||||||||||||||||||||||||
Balance, April 25, 2006
|
- | $ | - | - | $ | - | - | $ | - | - | $ | - | $ | - | - | $ | - | $ | - | |||||||||||||||||||||||||||||
Stock issued to founder
|
- | - | 332,292,000 | 180 | - | - | - | - | - | - | - | 180 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.01/share)
|
- | - | 17,500,000 | 140,000 | - | - | - | - | - | - | - | 140,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.01/share)
|
- | - | 700,000 | 5,600 | - | - | - | - | - | - | - | 5,600 | ||||||||||||||||||||||||||||||||||||
Stock contributed by shareholder
|
- | - | (11,666,500 | ) | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Stock issued for cash ($.05/share)
|
- | - | 4,000 | 200 | - | - | - | - | - | - | - | 200 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.05/share)
|
- | - | 4,000 | 200 | - | - | - | - | - | - | - | 200 | ||||||||||||||||||||||||||||||||||||
Fair value of warrants issued
|
- | - | - | - | - | - | - | - | 126,435 | - | - | 126,435 | ||||||||||||||||||||||||||||||||||||
Net Loss
|
- | - | - | - | - | - | - | - | - | - | (530,321 | ) | (530,321 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2006
|
- | - | 338,833,500 | 146,180 | - | - | - | - | 126,435 | - | (530,321 | ) | (257,706 | ) | ||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 1,750,000 | 15,000 | - | - | - | - | - | - | - | 15,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 12,000,000 | 103,000 | - | - | - | - | - | - | - | 103,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.0003/share)
|
- | - | 9,000,000 | 3,000 | - | - | - | - | - | - | - | 3,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 1,875,000 | 15,000 | - | - | - | - | - | - | - | 15,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 1,875,000 | 15,000 | - | - | - | - | - | - | - | 15,000 | ||||||||||||||||||||||||||||||||||||
- | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock issued for services ($.01/share)
|
- | - | 2,000,000 | 16,000 | - | - | - | - | - | - | - | 16,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 13,125,000 | 105,000 | - | - | - | - | - | - | - | 105,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 80,495,000 | 241,485 | - | - | - | - | - | - | - | 241,485 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 200,000 | 600 | - | - | - | - | - | - | - | 600 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 8,300,000 | 24,900 | - | - | - | - | - | - | - | 24,900 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 25,000 | 75 | - | - | - | - | - | - | - | 75 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 120,000 | 360 | - | - | - | - | - | - | - | 360 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 1,025,000 | 3,075 | - | - | - | - | - | 3,075 | ||||||||||||||||||||||||||||||||||||||
Stock issued in connection to cash offering
|
- | - | 28,125,000 | 84,375 | - | - | - | - | (84,375 | ) | - | - | - | |||||||||||||||||||||||||||||||||||
Stock issued for services ($.01/share)
|
- | - | 600,000 | 6,000 | - | - | - | - | - | - | - | 6,000 | ||||||||||||||||||||||||||||||||||||
Net loss, for the year ended December 31, 2007
|
- | - | - | - | - | - | - | - | - | - | (472,986 | ) | (472,986 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2007
|
- | - | 499,348,500 | 779,050 | - | - | - | - | 42,060 | - | (1,003,307 | ) | (182,197 | ) | ||||||||||||||||||||||||||||||||||
Stock issuable for services ($.01/share)
|
- | - | - | - | - | - | 400,000 | 4,000 | - | - | - | 4,000 | ||||||||||||||||||||||||||||||||||||
Net loss, for the year ended December 31, 2008
|
- | - | - | - | - | - | - | - | - | - | (1,721,156 | ) | (1,721,156 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2008
|
- | - | 499,348,500 | 779,050 | - | - | 400,000 | 4,000 | 42,060 | - | (2,724,463 | ) | (1,899,353 | ) | ||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 2,500,000 | 25,000 | - | - | - | - | - | - | - | 25,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.008/share)
|
- | - | 366,599 | 3,000 | - | - | - | - | - | - | - | 3,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services
|
- | - | 280,000 | 14,000 | - | - | 722,311 | 18,000 | - | - | - | 32,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services
|
- | - | - | - | - | - | 10,000,000 | 200,000 | - | (103,333 | ) | - | 96,667 | |||||||||||||||||||||||||||||||||||
Net loss for the year ended December 31, 2009
|
- | - | - | - | - | - | - | - | - | - | (1,432,091 | ) | (1,432,091 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2009
|
- | - | 502,495,099 | 821,050 | - | - | 11,122,311 | 222,000 | 42,060 | (103,333 | ) | (4,156,554 | ) | (3,174,777 | ) | |||||||||||||||||||||||||||||||||
Stock issued for services ($.01/share)
|
- | - | 540,000 | 5,400 | - | - | - | - | - | (5,000 | ) | - | 400 | |||||||||||||||||||||||||||||||||||
Stock issued for services ($.02/share)
|
- | - | 17,885,915 | 334,000 | - | - | - | - | - | - | - | 334,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.08/share)
|
- | - | 387,500 | 31,000 | - | - | - | - | - | - | - | 31,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.15/share)
|
- | - | 200,000 | 30,000 | - | - | - | - | - | - | - | 30,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.05/share)
|
- | - | 280,000 | 14,000 | - | - | - | - | - | - | - | 14,000 | ||||||||||||||||||||||||||||||||||||
Warrants issued for services
|
- | - | - | - | - | - | - | - | 168,000 | (168,000 | ) | - | - | |||||||||||||||||||||||||||||||||||
Stock issued in connection with convertible note conversion
|
- | - | 5,694,451 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued in connection with convertible note conversion
|
- | - | 854,169 | 15,000 | - | - | - | - | - | - | - | 15,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.02/share)
|
- | - | 10,000,000 | 200,000 | - | - | (10,000,000 | ) | (200,000 | ) | - | - | - | - | ||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 4,000,000 | 28,632 | - | - | - | - | - | - | - | 28,632 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.02/share)
|
- | - | 3,667,316 | 70,000 | - | - | - | - | - | - | - | 70,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.08/share)
|
- | - | 1,179,245 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.06/share)
|
- | - | 1,157,407 | 75,000 | - | - | - | - | - | - | - | 75,000 | ||||||||||||||||||||||||||||||||||||
Exercise of 6,000,000 warrants in exchange for stock
|
- | - | 5,177,801 | 10,000 | - | - | - | - | 677,908 | - | - | 687,908 | ||||||||||||||||||||||||||||||||||||
Deferred compensation realized
|
- | - | - | - | - | - | - | - | - | 250,333 | - | 250,333 | ||||||||||||||||||||||||||||||||||||
Forgiveness of accrued payable to related party
|
- | - | - | - | - | - | - | - | 499,412 | 499,412 | ||||||||||||||||||||||||||||||||||||||
Forgiveness of derivative liability to related party
|
- | - | - | - | - | - | - | - | 2,102,795 | 2,102,795 | ||||||||||||||||||||||||||||||||||||||
Net loss for the year ended December 31, 2010
|
- | - | - | - | - | - | - | - | - | - | (1,782,888 | ) | (1,782,888 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2010
|
- | - | 553,518,903 | 1,834,082 | - | - | 1,122,311 | 22,000 | 3,490,175 | (26,000 | ) | (5,939,442 | ) | (619,185 | ) | |||||||||||||||||||||||||||||||||
Stock issued for cash ($.06/share)
|
- | - | 1,470,588 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.05/share)
|
- | - | 2,083,333 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.07/share)
|
- | - | 1,000,000 | 70,000 | - | - | - | - | - | - | - | 70,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.07/share)
|
- | - | 1,029,412 | 70,000 | - | - | - | - | - | - | - | 70,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.07/share)
|
- | - | 1,420,455 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.07/share)
|
- | - | 1,372,119 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.08/share)
|
- | - | 1,314,406 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.06/share)
|
- | - | 1,543,210 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for license ($0.11/share)
|
- | - | 2,200,000 | 242,000 | - | - | - | - | - | - | - | 242,000 | ||||||||||||||||||||||||||||||||||||
Exercise of 20,000,000 warrants in exchange for stock
|
- | - | 19,767,985 | 2,569,838 | - | - | - | - | (2,569,838 | ) | - | - | - | |||||||||||||||||||||||||||||||||||
Deferred compensation realized
|
- | - | - | - | - | - | - | - | - | 26,000 | - | 26,000 | ||||||||||||||||||||||||||||||||||||
Net loss for the year ended December 31, 2011
|
- | - | - | - | - | - | - | - | - | - | (1,295,310 | ) | (1,295,310 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2011
|
- | - | 586,720,411 | 5,385,920 | - | - | 1,122,311 | 22,000 | 920,337 | - | (7,234,752 | ) | (906,495 | ) | ||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.06/share)
|
- | - | 1,562,500 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.04/share)
|
- | - | 2,403,846 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.05/share)
|
- | - | 1,923,077 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.04/share)
|
- | - | 2,155,172 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.02/share)
|
- | - | 1,004,832 | 25,000 | - | - | - | - | - | - | - | 25,000 | ||||||||||||||||||||||||||||||||||||
Shares issued for services ($0.10/share)
|
- | - | 3,000,000 | 300,000 | - | - | - | - | - | - | - | 300,000 | ||||||||||||||||||||||||||||||||||||
Shares issued for services ($0.06/share)
|
- | - | 300,000 | 18,000 | - | - | - | - | - | - | - | 18,000 | ||||||||||||||||||||||||||||||||||||
Shares issued for services ($0.06/share)
|
- | - | 1,600,000 | 96,000 | - | - | - | - | - | - | - | 96,000 | ||||||||||||||||||||||||||||||||||||
Shares issued for services ($0.06/share)
|
- | - | 1,600,000 | 96,000 | - | - | - | - | - | - | - | 96,000 | ||||||||||||||||||||||||||||||||||||
Shares issued for services ($0.04/Share)
|
- | - | 1,000,000 | 40,000 | - | - | - | - | - | - | - | 40,000 | ||||||||||||||||||||||||||||||||||||
Net loss for the year ended December 31, 2012
|
- | - | - | - | - | - | - | - | - | - | (1,202,921 | ) | (1,202,921 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2012
|
- | $ | - | 603,269,838 | $ | 6,360,920 | - | $ | - | 1,122,311 | $ | 22,000 | $ | 920,337 | $ | - | $ | (8,437,673 | ) | $ | (1,134,416 | ) |
(A Development Stage Company)
|
|||||
Statements of Cash Flows
|
For the Years Ended December 31,
|
For the Period
from April 25,
2006
(Inception) to
December 31,
2012
|
|||||||||||
2012
|
2011
|
|||||||||||
Cash Flows From Operating Activities:
|
||||||||||||
Net Loss
|
$ | (1,202,921 | ) | $ | (1,295,310 | ) | $ | (8,437,673 | ) | |||
Adjustments to reconcile net loss to net cash used in operations
|
||||||||||||
Depreciation expense
|
5,583 | 5,370 | 11,406 | |||||||||
Stock issuable for services
|
- | - | 22,000 | |||||||||
Change in Fair Value of Derivative Liability
|
- | - | 2,790,703 | |||||||||
Stock issued for services
|
550,000 | 312,000 | 1,458,180 | |||||||||
Warrants issued to employees
|
- | - | 126,435 | |||||||||
Warrants issued to consultants
|
- | - | 168,000 | |||||||||
Deferred compensation realized
|
- | 26,000 | 200,000 | |||||||||
Changes in operating assets and liabilities:
|
||||||||||||
(Increase)Decrease in prepaid expenses
|
(2,270 | ) | - | (2,270 | ) | |||||||
Increase in accrued expenses and other payables - related party
|
238,977 | 153,256 | 1,369,600 | |||||||||
Increase in accounts payable
|
(152,291 | ) | 242,588 | 329,226 | ||||||||
Net Cash Used In Operating Activities
|
(562,922 | ) | (556,096 | ) | (1,964,393 | ) | ||||||
Cash Flows From Investing Activities:
|
||||||||||||
Loan receivable
|
- | (6,000 | ) | (6,000 | ) | |||||||
Interest receivable
|
(192 | ) | - | (192 | ) | |||||||
Purchase of Fixed Assets and Domain Name
|
- | (1,174 | ) | (27,914 | ) | |||||||
Net Cash Used In Investing Activities
|
(192 | ) | (7,174 | ) | (34,106 | ) | ||||||
Cash Flows From Financing Activities:
|
||||||||||||
Proceeds from issuance of convertible note
|
- | - | 120,000 | |||||||||
Loan payable
|
(3,513 | ) | (3,561 | ) | 8,754 | |||||||
Proceeds from issuance of common stock
|
425,000 | 670,000 | 1,923,527 | |||||||||
Net Cash Provided by Financing Activities
|
421,487 | 666,439 | 2,052,281 | |||||||||
Net Increase (Decrease) in Cash
|
(141,627 | ) | 103,169 | 53,782 | ||||||||
Cash at Beginning of Period
|
195,409 | 92,240 | - | |||||||||
Cash at End of Period
|
$ | 53,782 | $ | 195,409 | $ | 53,782 | ||||||
Supplemental disclosure of cash flow information:
|
||||||||||||
Cash paid for interest
|
$ | - | $ | - | $ | - | ||||||
Cash paid for taxes
|
$ | - | $ | - | $ | - | ||||||
Supplemental disclosure of non-cash investing and financing activities:
|
||||||||||||
Shares issued in connection with cashless warrants exercise
|
$ | - | $ | 2,569,838 | $ | 2,569,838 | ||||||
Shares issued in connection with convertible note payable
|
$ | - | $ | - | $ | 115,000 | ||||||
Beneficial conversion feature on convertible notes and related debt discount
|
$ | - | $ | - | $ | 120,000 |
2012
|
2011
|
|||||||
Expected income tax recovery (expense) at the statutory rate of 34%
|
$
|
(408,999)
|
$
|
(440,405)
|
||||
Tax effect of expenses that are not deductible for income tax purposes (net of other amounts deductible for tax purposes)
|
188,053
|
527
|
||||||
Change in valuation allowance
|
220,946
|
438,879
|
||||||
Provision for income taxes
|
$
|
-
|
$
|
-
|
Years Ended December,
|
||||||||
2012
|
2011
|
|||||||
Deferred tax liability:
|
$
|
-
|
$
|
-
|
||||
Deferred tax asset
|
||||||||
Net Operating Loss Carryforward
|
2,029,742
|
1,808,796
|
||||||
Valuation allowance
|
(2,029,742)
|
(1,808,796)
|
||||||
Net deferred tax asset
|
-
|
-
|
||||||
Net deferred tax liability
|
$
|
-
|
$
|
-
|
As of
December 31,
2012
|
As of
December 31,
2011
|
|||||||
Automobile
|
$
|
25,828
|
$
|
25,828
|
||||
Office Equipment
|
2,086
|
2,086
|
||||||
Less Accumulated Depreciation
|
(11,406
|
)
|
(5,823
|
)
|
||||
Total Property and Equipment
|
$
|
16,508
|
$
|
22,091
|
Schedule maturities of long-term obligations at years ending December 31:
|
||||
2013
|
4,377
|
|||
2014
|
4,378
|
|||
$
|
8,755
|
●
|
Common stock Class A, unlimited number of shares authorized, no par value
|
●
|
Common stock Class B, unlimited number of shares authorized, no par value
|
●
|
Preferred stock, unlimited number of shares authorized, no par value
|
–
|
We do not have a system in place to ensure all of our consulting agreements are timely reconciled to the financial statements.
|
–
|
We failed to property account for the embedded derivative liability associated with the CEO’s employment agreement in our quarterly and annual reports.
|
1.
|
We will continue to educate our management personnel to increase its ability to comply with the disclosure requirements and financial reporting controls; and
|
2.
|
We will increase management oversight of accounting and reporting functions in the future; and
|
3.
|
As soon as we can raise sufficient capital or our operations generate sufficient cash flow, we will hire personnel to handle our accounting and reporting functions.
|
NAME
|
AGE
|
POSITION
|
DATE APPOINTED
|
|||
Kim Thompson
|
51
|
President, Chief Executive Officer, Director
|
April 25, 2006
|
Name and principal position
|
Year
|
Salary
($)
|
Bonus
($)
|
Stock Awards
($)
|
Option Awards
($)
|
Non-Equity Incentive Plan Compensation
($)
|
Nonqualified Deferred Compensation Earnings ($)
|
All Other Compensation
($)
|
Total
($)
|
|||||||||||||||||||||||||
Kim Thompson
|
2012
|
$
|
222,600
|
44,520
|
0
|
$
|
0
|
0
|
$
|
0
|
$
|
40,950.81
|
(1)
|
$
|
308,070.81
|
|||||||||||||||||||
President, CEO, CFO and Director
|
2011
|
$
|
210,000
|
40,000
|
0
|
$
|
0
|
0
|
$
|
0
|
$
|
25,120
|
(2)
|
$
|
275,120
|
1)
|
In 2012, Kim Thompson received $10,950.81 in medical insurance and medical reimbursement, and $30,000 in retirement fund contributions pursuant to an employment agreement entered into with us.
|
2)
|
In 2011, Kim Thompson received $17,039 in medical insurance and medical reimbursement, $8,000 in retirement fund contributions and $81 for automobile expenses pursuant to an employment agreement entered into with us.
|
Title of Class
|
Name and Address of Beneficial Owner
|
Amount and Nature
of Beneficial Owner
|
Percent of
Class (1)
|
|||||||
Class A Common Stock
|
Kim Thompson
120 N. Washington Square, Suite 805
Lansing, MI 48933
|
296,054,644 | 48.85 | % | ||||||
Class A Common Stock
|
All executive officers and directors as a group (1 Person)
|
296,054,644 | 48.85 | % |
●
|
approved by our audit committee; or
|
●
|
entered into pursuant to pre-approval policies and procedures established by the audit committee, provided the policies and procedures are detailed as to the particular service, the audit committee is informed of each service, and such policies and procedures do not include delegation of the audit committee's responsibilities to management.
|
1.
|
List of Financial Statements.
|
●
|
Report of PS Stephenson & Co., P.C., Independent Registered Public Accounting Firm.
|
●
|
Balance Sheets at December 31, 2012 and 2011
|
●
|
Statements of Operations for the years ended December 31, 2012 and 2011 and for the period from April 25, 2006 (inception) to December 31, 2012
|
●
|
Statements of Stockholders’ Equity/(Deficit) for the years ended December 31, 2012 and 2011 and for the period from April 25, 2006 (inception) to December 31, 2012
|
●
|
Statements of Cash Flows for the years ended December 31, 2012 and 2011 (Restated) and for the period from April 25, 2006 (inception) to December 31, 2012
|
●
|
Notes to Financial Statements for the years ended December 31, 2012 and 2011 and for the period from April 25, 2006 (inception) to December 31, 2012
|
2.
|
List of all Financial Statement Schedules.
|
3.
|
Exhibits required by Item 601 of Regulation S-K. The following exhibits are filed as a part of, or incorporated by reference into, this Report:
|
EXHIBIT NUMBER
|
DESCRIPTION
|
|
3.1*
|
Articles of Incorporation.
|
|
3.2
|
Articles of Amendment (filed as Exhibit 3.2 to the registration statement on Form S-1, SEC File No. 333-162316, filed on October 2, 2009, and incorporated by reference herein).
|
|
3.3*
|
By-Laws.
|
|
10.1*
|
Addendum to the Employment Contract, dated November 6, 2006, by and between Kraig Biocraft Laboratories, Inc. and Kim Thompson and Employment Contract, dated as of April 26, 2006, by and between Kraig Biocraft Laboratories, Inc. and Kim Thompson.
|
|
10.2*
|
Securities Purchase Agreement between Kraig Biocraft Laboratories and Worth Equity Fund, L.P. and Mutual Release.
|
|
10.3*
|
Securities Purchase Agreement between Kraig Biocraft Laboratories and Lion Equity.
|
|
10.4
|
Amended Letter Agreement, dated September 14, 2009, by and between Kraig Biocraft Laboratories and Calm Seas Capital, LLC. (filed as Exhibit 10.4 to the registration statement on Form S-1, SEC File No. 333-162316, filed on October 2, 2009, and incorporated by reference herein).
|
|
10.5
|
Exclusive License Agreement, effective as of May 8, 2006, by and between The University of Wyoming and Kraig Biocraft Laboratories, Inc. (filed as Exhibit 10.5 to the Form 10-K for the year ended December 31, 2009, filed on April 15, 2010 and incorporated by reference herein).
|
|
10.6
|
Addendum to the Founder’s Stock Purchase and Intellectual Property Transfer Agreement, dated December 26, 2006, and the Founder’s Stock Purchase and Intellectual Property Transfer Agreement dated April 26, 2006 (filed as Exhibit 10.6 to amendment no. 2 to the registration statement on Form S-1, SEC File No. 333-162316, filed on January 25, 2010, and incorporated by reference herein).
|
|
10.7
|
Intellectual Property/Collaborative Research Agreement, dated March 20, 2010, by and between Kraig Biocraft Laboratories and The University of Notre Dame du Lac (filed as exhibit 10.7 to the Form 10-K for the year ended December 31, 2009, filed on April 15, 2010 and incorporated by reference herein)
|
|
14.1**
|
Code of Business Conduct and Ethics.
|
|
31.1 #
|
Certification of Chief Executive Officer/Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
32.1 #
|
Certification of Chief Executive Officer/Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101 #
|
Interactive data files.
|
Kraig Biocraft Laboratories, Inc.
|
|||
Dated: April 16, 2013
|
By:
|
/s/ Kim Thompson
|
|
Kim Thompson
Chief Executive Officer
(Principal Executive Officer and
Principal Financial and Accounting Officer)
|
Name
|
Title
|
Date
|
||
/s/ Kim Thompson
|
Chief Executive Officer and Sole Director
|
April 16, 2013
|
||
Kim Thompson
|
1.
|
I have reviewed this Annual Report on Form 10-K of Kraig Biocraft Laboratories, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods present in this report;
|
|
4.
|
I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding their reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financing reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involved management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: April 16, 2013
|
|
/s/ Kim Thompson
|
|
Kim Thompson
Chief Executive Officer and Chief Financial Officer (principal executive officer, principal financial officer and principal accounting officer)
|
1.
|
The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly represents in all material respects, the financial condition and results of operations of Kraig Biocraft Laboratories, Inc.
|
Date: April 16, 2013
|
|
/s/ Kim Thompson
|
|
Kim Thompson
Chief Executive Officer, Chief Financial Officer (principal executive officer, principal financial officer and principal accounting officer)
|
8. RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)
|
12 Months Ended |
---|---|
Dec. 31, 2012
|
|
Officer
|
|
Amount due to related party | $ 66,000 |
Interest expense related to intellectual property transfer agreement with an officer | 4,796 |
Principal stockholder
|
|
Amount due to related party | $ 576,921 |
3. EQUIPMENT
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUIPMENT |
NOTE 3 EQUIPMENT
Depreciation and amortization expense for the years ended December 31, 2012 and 2011 was $5,583 and $5,370 respectively. |